What is the purpose of the Brand Fund for Goldfish Swim School?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
days before changing Brand Fund Contribution requirements. The Brand Fund shall be maintained and administered by Franchisor or its designee, including Franchisor's affiliate as follows:
- 11.3.1 Franchisor shall oversee all marketing programs, with sole control over creative concepts, materials and media used in such programs, and the placement and allocation thereof. Franchisor does not warrant that any particular franchisee will benefit directly or pro rata from expenditures by the Brand Fund. The program(s) may be local, regional or Systemwide. Franchisor does not warrant the success or effectiveness of any particular marketing program.
- 11.3.2 Franchisee's Brand Fund Contributions may be used to meet the costs of, or to reimburse Franchisor for its costs (including, without limitation, Franchisor's employment expenses for staff to manage the Brand Fund) of, producing, maintaining, administering and directing consumer advertising (including, without limitation, the cost of preparing and conducting television, radio, Internet, magazine, newspaper, and direct mail advertising campaigns and other public relations activities; developing and/or hosting an Internet web page or site and similar activities; employing advertising agencies to assist therein; and providing promotional brochures and other marketing materials to franchisees). All Brand Fund Contributions shall be maintained in a separate account from the monies of Franchisor and shall not be used to defray any of Franchisor's general operating expenses, except for such reasonable costs and expenses, if any, that Franchisor may incur in activities reasonably related to the administration of the Brand Fund.
- 11.3.3 Franchisor shall endeavor to spend all Brand Fund Contributions on marketing programs and promotions during Franchisor's fiscal year within which such contributions are made. If excess amounts remain in any Brand Fund at the end of such fiscal year, all expenditures in the following fiscal year(s) shall be made first out of such excess amounts, including any interest or other earnings of the Brand Fund, and next out of prior year contributions and then out of current contributions.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, the Brand Fund is primarily used to cover the costs of consumer advertising and public relations activities. These activities include television, radio, internet, magazine, newspaper, and direct mail advertising campaigns. The Brand Fund also supports the development and hosting of websites, the employment of advertising agencies, and the provision of promotional materials to franchisees.
All contributions to the Brand Fund are kept in a separate account from Goldfish Swim School's general operating funds. The only exception is for reasonable costs and expenses that Goldfish Swim School incurs in administering the Brand Fund. Goldfish Swim School aims to spend all Brand Fund contributions on marketing programs and promotions within the fiscal year they are made. If there are excess amounts at the end of the fiscal year, these will be used first in the following fiscal year's expenditures, including any interest or earnings from the Brand Fund.
Goldfish Swim School does not guarantee that any franchisee will directly or proportionally benefit from the Brand Fund expenditures, and they do not warrant the success or effectiveness of any specific marketing program. While Goldfish Swim School intends for the Brand Fund to be perpetual, they retain the right to terminate it at any time. If the Brand Fund is terminated, all contributions must be spent on advertising and promotional purposes or returned to franchisees on a pro rata basis, based on their total contributions to the fund. Each Goldfish Swim School operated by Goldfish Swim School or its affiliates contributes to the Brand Fund at the same rate as franchisees.